First ZERO CAPEX agreement for LED lighting Retrofits signed in Vietnam

Existing conventional lighting at Saigon Centre Phase 1 - a mixed-use development located in District 1 of Ho Chi Minh City will soon be replaced with light-emitting diode (LED) lighting under a zero capital expenditure (CAPEX) agreement recently signed between Philips Lighting Vietnam and Keppel Land WATCO - a Keppel Land-led joint venture company behind Saigon Centre. The initiative follows a similar agreement entered into by Philips and Keppel Land in Singapore a year ago. 

This first-ever cooperation scheme of its kind in Vietnam enables project owners and partners to gain the latest LED lighting system without upfront payment. Instead, payment will be made via installments based on energy saving achieved through the operation of the new LED lighting system. 

Several thousands of LED fixtures of different kinds, including GreenSpace downlight, Square Mainstream Spot LED, Master LEDbulb and Master LEDtube are now being arranged and will soon replace conventional fluorescent and halogen lamps in the common areas of the premise. Thanks to the high quality of Philips LED luminaires, the 30 office tenants at Saigon Centre can expect a new lighting experience with improved visual comfort. The LED lights will have longer lifespans of up to 50,000 hours, and save approximately 50% more energy compared with the current lighting solutions, which is equivalent to about US$34,000 per annum. 

A recent report by the General Department of Energy shows that electricity consumed by lighting accounts for 35% of the country’s total electricity consumption. That is a lot higher than the world’s average rate of about 17%. Particularly, in office buildings and condominiums, lighting takes up as high as 40% of total energy consumption, while such ratio in shopping centers is 35%. The Department is now urging to switch to LED lighting technology, blaming out-of-dated lighting technologies for such a high ratio. 

Mr. Eric Benedetti, General Director of Philips Lighting Vietnam, says, “With the ZERO CAPEX cooperation model, Philips will be able to help Keppel Land and property owners to apply the most innovative LED lighting technology without any concern of paying the investment cost upfront.”

The ZERO CAPEX scheme is expected to fuel such switch when it is made available to businesses with a great demand for LED lighting retrofits such as office buildings, serviced apartments, shopping centers, textile factories, leather factories and electronics factories. These businesses can make use of sustainable LED lighting solutions to maximize business efficiency and productivity, and enhance corporate image.

“This agreement with Philips is a stride forward in our green journey here as we do our part to reduce our carbon footprint. The agreement will also allow us to achieve long term savings from reduced energy consumption and operating costs.” says Mr. Linson Lim, President, Keppel Land (Vietnam).